Parallax Design v. Certain Underwriters at Lloyds
Parallax Design and Construction, Inc. (Parallax) and Parallaxs officers, George Perrenod, Jr., Stan Thompson, and Martin Romo (collectively, Parallaxs officers) obtained directors and officers (D & O) insurance from Certain Underwriters at Lloyds London (Underwriters). Perrenods former employer sued Parallax and Parallaxs officers and they tendered the lawsuit to Underwriters. Underwriters refused to provide a defense for them in the lawsuit, and Parallax and its officers sued Underwriters for breach of contract and breach of the covenant of good faith and fair dealing.
The trial court granted Underwriters motion for summary judgment against Parallax on the basis that the exclusionary clause in the insurance policy barred Parallaxs claim. The court denied the motion as to Parallaxs officers. Parallax appealed.
Subsequently, the trial court granted Underwriters motion for judgment on the pleadings against Parallaxs officers. It found that they suffered no damages in their breach of contract claim because Parallax paid the settlement and costs in connection with the lawsuit. Parallaxs officers appealed.
Court consolidated the appeals of Parallax and Parallaxs officers. Court affirm the judgment as to Parallax, as Court conclude the exclusionary clause in the insurance policy applied to Parallaxs claim. Court reverse the judgment as to Parallaxs officers. The question whether Parallaxs officers suffered any damages is a factual issue and was not properly decided by judgment on the pleadings.
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